Money Blog - Pre-paying for a discount


THE SCENARIO Several years ago, I moved from a medium-sized house with a garage to a small condo with no garage. As you might imagine, some of the 'treasures' I'd accumulated and stuffed into my house and garage just don't fit into the much-smaller condo. So I did what so many of us do and rented a storage unit to keep the items I just couldn't bear to part with (this was after seven van-loads of donations to the local Goodwill). The storage center my extra stuff is currently housed in charges $176 per month for a 10'x10' unit like mine (now I know what business I should really be in). However, if you pay for 6 months in advance, they'll give you the sixth month for half off. So my question is "if I pre-pay for six months, what's the return on my up-front money?"
THE SOLUTION ... Read more...